Ethereum’s price action has been relatively bearish in recent months, breaking multiple support levels. However, investors can still hope that upward movement may be on the horizon.
As shown on the daily time frame, the price recently tested the resistance level at $1,750 but failed to break through it and was rejected on the downside.
The 50-day moving average, located around the $1,650 mark, is currently providing support and preventing a further decline to the $1,550 support level. However, if both the moving average and the mentioned support level are breached, the situation could deteriorate quickly, with the price potentially falling to $1,400 or even lower.
However, as long as these levels hold, there is potential for a rally towards the 200-day EMA, which is located near the $1,800 level. A break above the 200-day EMA would signal a bullish shift in the market in the medium term.
On the 4-hour chart, the price is moving in a critical zone. After the recent upside breakout of the large falling wedge pattern, the price was tested and rejected at the $1,750 resistance level.
It is currently hovering around the short-term support area of $1,650. If this level continues, the price is likely to start a new rise and possibly surpass the $1,750 level, targeting the $2,000 level in the coming months.
Ethereum price has been moving sideways, offering little indication of its future direction from a technical analysis perspective. Therefore, it would be useful to study market sentiment.
This chart shows the Coinbase premium gap, which is the price difference between Coinbase’s BTC/USD pair and Binance’s BTC/USDT pair. It is used to measure buying or selling pressure from US investors. Positive values indicate buying pressure, while negative values indicate selling pressure.
It is clear that after several months of positive values, this measure has shown negative values in the last few months. This indicates that US investors are currently bearish on Ethereum and are selling aggressively. Given its large financial resources, this behavior may lead to a market collapse if conditions persist.
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Cryptocurrency charts By TradingView.